Monday, June 3, 2019


Keybot the Quant remains short as the new week of trading begins. The bears are running the show with the algo number 30 points below the signal line. The stock market direction ahead can be boiled down to a battle between the SPX index and utilities.

Bears need UTIL below 760 (now at 784) which will usher in market carnage. If the 760 fails, that is bad enough, but if 742 fails, that opens a potential trap-door for equities and the US stock market may crash.

Bulls must keep UTIL elevated with all their might and at the same time push the SPX index above 2779-2782 as soon as possible (the week begins at 2752) to end the market selling. So bulls need 30 spoo's and S&P futures are trading down -12 about 6-1/2 hours before the opening bell for the US session.

If SPX remains below the key 2779-2782 (creating market weakness), and UTIL remains above 760 (creating market lift), status quo, the stock market will chop sideways with a slight downward bias.

The bulls will prove they can stop the selling and create a rally if they keep utilities elevated, push the SPX above 2779-2782, push NYA above 12470 and push VIX below 14.83. All these parameters directly impact stock market direction. If any one of the SPX, NYA and VIX parameters flip bullish, consider the caution flag out. If 2 of the 3 flip bullish, consider the imminent turn to the long side to be in play for Keybot the Quant.

The VIX begins trading and pops to 19.41. S&P futures -17. Keybot prints one pre-scheduled number this week on Friday morning. The beat goes on.

6/9/19; 7:00 PM EST =
6/7/19; 10:00 AM EST =
6/2/19; 7:00 PM EST EOM = -20; signal line is +10
5/31/19; 10:00 AM EST = -20; signal line is +12

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